Variable Costing Is More Appropriate Than Absorption Costing When the Decision

question 87

Multiple Choice

Variable costing is more appropriate than absorption costing when the decision ________.

• A)relates to production planning within the capacity limits in the short run
• B)involves reducing fixed costs that are controllable by the upper management
• C)does not involve analysis of profitability based on sales mix
• D)does not involve analysis of contribution margin

---

Definitions:

Gastropods

A large class of mollusks that include snails and slugs, characterized by a single shell (though some are shell-less) and a muscular foot for locomotion.

Ingest Food

The act of consuming food by mouth, initiating the process of digestion.

Sexual Reproduction

A biological process where two cells from different individuals unite to produce the first cell of a new organism.

Embryo Development

The process by which an embryo forms and develops, from fertilization to the fetus stage.